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2017 (9) TMI 1217 - AT - Income TaxDisallowance of net interest paid in the regular course of business and fully allowable u/s 36(1)(iii) - Held that:- Merely because the amount of ₹ 23.22 crore was shown under the head loans and advances it will not be proper to presume it to be a loan and not a contribution towards share capital without properly examining the facts and merely going by the nomenclature given in the financial statement. It is also evident from material placed before that in the past years the assessee has shown considerable interest income against which interest expenditure was set–off. The assessee’s claim has been accepted by the Department even in scrutiny assessments, as evident from the assessment orders passed for assessment years 2012–13 and 2013–14. Therefore, it cannot be held that the assessee has never carried out business in financing and investment. Since, these aspects have not been examined or properly looked into by the Departmental Authorities, we deem it proper to restore the issue back to the file of the Assessing Officer for fresh adjudication after due opportunity being heard to the assessee. Ground no.1 is allowed for statistical purposes. Non giving credit for TDS on interest earned - Held that:- The assessee on 26th February 2014, has made a claim for allowing credit for TDS on the interest earned of ₹ 12,88,776. In this context, he has drawn our attention to the copy of the said letter placed at Page–73 of the paper book. In any case of the matter, due credit for TDS should be given to the assessee. In view of the aforesaid, we direct the Assessing Officer to examine the issue and allow credit for TDS if corresponding income has been shown by the assessee in the impugned assessment year. Ground no.2, is allowed for statistical purposes.
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